HSBC plans autocallable notes linked to S&P 500 Financials via UBS

By E. Janene Geiss

Philadelphia, May 9 - HSBC USA Inc. plans to price 0% autocallable optimization securities with contingent protection due Nov. 18, 2009 linked to the S&P 500 Financials index, according to an FWP filing with the Securities and Exchange Commission.

UBS Financial Services Inc. and HSBC USA Inc. will be the underwriters.

The notes will be automatically called if the closing level of the index is at or above its starting level on any observation date.

The call price will be equal to par plus a fixed annual return to the relevant observation date. The annual return will be set at pricing and is expected to be 18.2%.

The observation dates are Aug. 13, 2008; Nov. 13, 2008; Feb. 13, 2009; May 18, 2009; and Aug. 13, 2009.

At maturity, investors will receive par if the index stays above the trigger level - 55% of the index's starting level - during the life of the notes. If the index has ever closed below the trigger level, the payout will be par times the index performance.

The notes are expected to price on May 13 and settle on May 16.

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